Formosa Sumco TechnologyTPE:3532 62 Return-on-Tangible-Equity is 4.95% as of Dec. 2025, which is 42% below its 10-year median of 8.47. GuruFocus rates TPE:3532 with a GF Score™ of 62/100 and a GF Value™ of NT$117.50 (Significantly Overvalued). The stock has 11 warning signs investors should review. Among 984 Semiconductors companies, Formosa Sumco Technology ranks worse than 59.25% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Formosa Sumco Technology's annualized net income for the quarter that ended in Dec. 2025 was NT$1,216 Mil. Formosa Sumco Technology's average shareholder tangible equity for the quarter that ended in Dec. 2025 was NT$24,557 Mil. Therefore, Formosa Sumco Technology's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 4.95%.
The historical rank and industry rank for Formosa Sumco Technology's Return-on-Tangible-Equity or its related term are showing as below:
TPE:3532'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.48 Med: 8.47 Max: 25.69
Current: 2.51
During the past 13 years, Formosa Sumco Technology's highest Return-on-Tangible-Equity was 25.69%. The lowest was 2.48%. And the median was 8.47%.
TPE:3532's Return-on-Tangible-Equity is ranked worse than 59.25% of 984
companies
in the Semiconductors industry
Industry Median: 5.24
vs TPE:3532: 2.51
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Formosa Sumco Technology Return-on-Tangible-Equity Related Terms
Formosa Sumco Technology Return-on-Tangible-Equity Historical Data
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The historical data trend for Formosa Sumco Technology's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
TPE:3532 vs AMAT, LRCX, KLAC: Return-on-Tangible-Equity Comparison
For the Semiconductor Equipment & Materials subindustry, Formosa Sumco Technology's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Formosa Sumco Technology Return-on-Tangible-Equity vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Formosa Sumco Technology's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Formosa Sumco Technology's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 4.95% mean?
Formosa Sumco Technology (TPE:3532) has a Return-on-Tangible-Equity of 4.95% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Formosa Sumco Technology and its competitors. This is 42% below median its historical median of 8.47. Over the past decade, Formosa Sumco Technology's Return-on-Tangible-Equity has ranged from 2.48 to 25.69. According to the industry distribution chart, Formosa Sumco Technology ranks #583 out of 984 companies in the Semiconductors industry, placing it in the top 59.2%.
Is Formosa Sumco Technology's Return-on-Tangible-Equity too high?
Formosa Sumco Technology's current Return-on-Tangible-Equity of 4.95% is 42% below median its 10-year median of 8.47. Over the past 10 years, this metric has ranged from a low of 2.48 to a high of 25.69. The Semiconductors industry median Return-on-Tangible-Equity is 5.24. Formosa Sumco Technology's value of 4.95% is 5.5% below this industry median. Based on the distribution chart, Formosa Sumco Technology ranks #583 out of 984 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Formosa Sumco Technology has a GF Score™ of 62/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Formosa Sumco Technology's Return-on-Tangible-Equity compare to AMAT and LRCX?
According to the Semiconductors industry distribution chart, Formosa Sumco Technology ranks #583 out of 984 companies for Return-on-Tangible-Equity. This places Formosa Sumco Technology in the lower half of its industry. The industry median Return-on-Tangible-Equity is 5.24. Formosa Sumco Technology's value of 4.95% is 5.5% below this benchmark. Historically, Formosa Sumco Technology's own Return-on-Tangible-Equity has ranged from 2.48 to 25.69 over the past decade. While the company's 10-year median is 8.47 vs. the industry median of 5.24, Formosa Sumco Technology has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Semiconductors company?
The median Return-on-Tangible-Equity among Semiconductors companies is 5.24, based on 984 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Formosa Sumco Technology's current Return-on-Tangible-Equity of 4.95% is 5.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Formosa Sumco Technology and its competitors. For the Semiconductors industry, the median Return-on-Tangible-Equity is 5.24 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Formosa Sumco Technology's current Return-on-Tangible-Equity is 4.95%, which is 42% below median its own 10-year median of 8.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Formosa Sumco Technology stock overvalued right now?
Based on GuruFocus' analysis, Formosa Sumco Technology (TPE:3532) is currently considered Significantly Overvalued. The stock's GF Value™ is NT$117.50, compared to a current price of NT$423.50 — trading 260.4% above its estimated fair value. The current Return-on-Tangible-Equity is 4.95%, which is 42% below median its 10-year median of 8.47 and 5.5% below the Semiconductors industry median of 5.24. Formosa Sumco Technology's overall GF Score™ is 62/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Formosa Sumco Technology (TPE:3532), the current Return-on-Tangible-Equity is 4.95% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Formosa Sumco Technology (TPE:3532) Overvalued in 2026?
Based on GuruFocus' analysis, Formosa Sumco Technology stock appears to be overvalued.
The current stock price of NT$423.50 is trading 260.4% above its estimated GF Value™ of NT$117.50.
GuruFocus considers Formosa Sumco Technology to be Significantly Overvalued.
Key valuation signals for TPE:3532:
Return-on-Tangible-Equity: 4.95% (42% below median its 10-year median of 8.47)
GF Value™: NT$117.50 vs. price of NT$423.50 (260.4% above fair value)
Industry Position: 5.5% below the Semiconductors median (#583 of 984)
No single metric tells the full story. See the TPE:3532 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Formosa Sumco Technology Corp is a Taiwan-based manufacturer and seller of silicon wafer electronic products. The company operates in two principal geographical areas: Taiwan, China, and Japan, with the majority of revenue from Taiwan. The company's product range includes Polished Wafers, Annealed Wafers, Test Wafers, and Epitaxial Wafers.
62GF Score
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